The role investments could potentially play in reversing 'global boiling'

 

The role investments could potentially play in reversing 'global boiling'

August 2023 | 5 minute read | Marketing Communication  

As people are setting off or preparing for their summer holidays; a time where tourists seek good weather, rest time and exploration, the news on the TV, radio and newspapers is startling and dampening the moods of tourists and locals a like. In fact, the UN Secretary-General recently stated that we are in the ‘era of global boiling’¹. But, what does this mean?

July 6 saw the hottest daily average temperature with July 5 and 7 following closely behind – in reality the first 3 weeks of July was the warmest 3 week period on record.   

But it’s not just the air temperatures that are rising as global average sea surface temperatures have been rising above records too since May².

A number of European holiday hotspots have been witnessing adverse temperatures throughout July, which have been resulting in wildfires, soaring temperatures and storms. These wildfires result in casualties and evacuations and can have an effect on people’s health².

Soaring temperatures is not unique to Europe though, North America and Asia have also witnessed the devastation being caused by global warming such as the impact on health, the environment and local economies².

Weather is one of the deadliest things living beings have to contend with and July 2023 saw the hottest temperatures on record².

Global daily surface air temperature (°C) from 1 January 1940 to 23 July 2023, plotted as time series for each year. 2023 and 2016 are shown with thick lines shaded in bright red and dark red, respectively. Other years are shown with thin lines and shaded according to the decade, from blue (1940s) to brick red (2020s). The dotted line and grey envelope represent the 1.5°C threshold above preindustrial level (1850–1900) and its uncertainty. Data: ERA5. Credit: C3S/ECMWF.

The Copernicus Climate Change Service (C3S) believe that these record-breaking temperatures are a trend of more increases in global temperatures³. As noted before by the Intergovernmental Panel on Climate Change (IPCC) the rising temperatures being experienced globally are a direct result of anthropogenic emissions⁴. This statement further underpins the results of the study in July 2023, by scientists at the World Weather Attribution Network found that without global warming the incidence of rising temperatures and wildfires would be rarer³.

And the trend is expected to continue into the future

The World Meteorological Organization believe that there is a 98% chance that at least one of the next five years will be the warmest on record. They also predict that there is a 66% chance of temporarily exceeding the 1.5°C above the 1850-1900 average for at least one of those five years².

Reaching Net Zero could help solve these issues

There are many benefits to reaching Net Zero but more needs to be done to achieve it. Now more than ever all actors need to come together and align to achieve this goal. Companies, governments, the finance industry and individuals all have a role to play.

At a personal level we can each make little changes to the way we live such as managing your waste, using sustainable modes of transport and conserving energy to name but a few.

As an investor or organisation, collectively we can seek to finance the journey to Net Zero by using Science Based Targets and other metrics such as temperatures to measure the contribution of issuers to the net-zero objective and  influence companies through engagement and voting.

If you want to get started on your Net Zero journey

or find out more speak to your local sales representative

Click here  

Sources: 

1 https://news.un.org/en/story/2023/07/1139162
2 https://public.wmo.int/en/media/press-release/july-2023-set-be-hottest-month-record
3 https://public.wmo.int/en/media/news/heatwaves-wildfires-mark-summer-of-extremes
4 https://www.ipcc.ch/2021/08/09/ar6-wg1-20210809-pr/

Important Information

Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 04 August 2023. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.

Date of first use: 04 August 2023

Doc ID: 3038626